My 38M Concord has hydralic line to the material cylinders that drip oil onto material rods each time the pump strokes. My 32 Schwing doesn't have this set up. My question, is it something I need? after a days worth of pumping there is quite a bit of oil mixed in my water box that I dump on the ground. 

Yes,this putz and the knock off putz pumps have an oiler hole in the material cylinders.You can adjust the flow rate of the material cylinder drip line.

Good point. Its probbably not a must have since not all pumps have it. But it is poluting so I would try to screw it down to a minimum..